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San Diego's Housing Market Not Expected to Improve Much in 2008

This year was a tough year for the San Diego housing industry. And some now analysts say next year may not be that much better. Ana Tintocalis has details.

This year was a tough year for the San Diego housing industry. And some now analysts say next year may not be that much better. Ana Tintocalis has details.

New home sales dropped nationally in November to their lowest level in 12 years. That trend played out in San Diego County as well.

The Commerce Department reports that new home sales fell 9 percent -- the worst sales pace since 1995. Some economists say the outlook for 2008 is not so great either. The downward trend could hit local homebuilders in the pocketbook.

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Research shows permits for new homes in San Diego county dropped this year, about 25 percent from the year before. And several local builders say they're having a hard time selling new homes - partly because they're competing against lower-priced homes on the foreclosure market.

Some experts say sales and home prices are in a free fall which will continue in 2008. That could be good news for prospective buyers, especially in areas such as San Diego, where high home costs have kept many buyers on the sidelines.

Ana Tintocalis, KPBS News.